Living Benefits Life Insurance

Life Insurance Living Benefits

Life Insurance: Living Benefits

In most cases, people purchase life insurance to provide a form of security to a family member if they die. But normal life insurance won’t cover the burden of medical costs in the event that you are struck by a terminal, chronic or critical illness like a Living Benefits Life Insurance policy will.

And that’s where Coach B. comes in to help. Our living benefits life insurance relieves you of the financial demand in case you are struck by a chronic, terminal or critical illness. Most term life insurance products offer living benefits life insurance as a rider. A rider is just an option which can be added onto your life insurance policy to give you some additional benefits. These added benefits can be gotten to while the insured is still living. Read on below for the important benefits of living benefits life insurance.

If An Unexpected Illness Strikes Will You Be Ready Financially?

The expense of medical bills for terminal illnesses is constantly escalating. When this couples up with physical and emotional struggles of dealing with a terminal illness, the burden can be too much to contain.

Statistics from the American Cancer Society estimate the possibility of diagnosing almost 2 million new cancer cases and over 500k cancer-related deaths occurring around the United States this year alone. The American Heart Association has also reported that cardiovascular diseases are the major cause of death around the world. These account for greater than 17.3 million deaths every year. And this number is projected to exceed 24 million by the year 2030. The U.S Department of Health and Human Services has determined that long term care cost will average above $6000 in the United States in a semi-private room at nursing homes.   Assisted living care facility will cost over $3250 per month.

These indicate that most of the people are not financially ready for a terminal, critical or chronic illness. Investing in a good health insurance plan or disability plan alone will not sufficiently cover you in the event in case a sudden accident or vital health problem like a stroke,  heart attack or being diagnosed with cancer.

The health insurance plan will cover for a portion of the medical costs associated with the illness. But there could be some deductions, copayments and personally financing some expenses. In addition, a health insurance plan will not help you recover the lost income during the period of recovery from the sickness. Disability plans usually cover for the income lost while you miss work but it will not suffice to cover more than half of the wages lost.

In the event of a terminal illness, your expenses will escalate and your income will decrease. This is a guarantee regardless of your age, net worth or the type of health insurance coverage that you have. All these can make you plunge into a debt that could leave you financially paralyzed.

Another study by the CNBC Report has established that over 60% of bankruptcies are personal in the U.S and are directly related to medical problems. This is worsened by the fact that about 80% of people in the study were suffering from a critical health condition.  They also had health insurance coverage at the onset of illness. Thus, it is evident that you need additional protection that entails more benefits compared to those provided by many health and disability insurance plans.

That is when the living benefits life insurance comes in. This type of insurance was introduced to bail you out in such a situation.

Living Benefits Life Insurance:  How It Deals With A Chronic, Terminal or Critical Illness

It may happen that you might come up with a chronic illness that requires a lot of resources and a longer period of time. Or you may be diagnosed with cancer, have a heart attack or stroke. There is a higher probability that you would recover and go on to live a long and fulfilled life if you can afford to pay for better healthcare.

But it is unfortunate that your insurance will only offer a limited solution. It will only pay for a limited percentage of the total cost and the extra burden will be on your shoulders. Would it not be a better idea if you could have access to your insurance death benefit and use it to foot the healthcare costs? It can save you from spending your savings to pay for the bill.

The USA Today reports that one-quarter of cancer patients or their immediate families are said to have spent most or the majority of their savings just to pay for their medical care. And an eighth of the individuals with advanced cancer cases resorted to turning down the needed care because the costs were too high.

Other insurance companies may accelerate a significant amount of the death benefits in the event that you medically qualify as a terminally ill patient. But that will result in huge deductions on the accrued benefits that your beneficiary will receive. They can also allow you to access some funds through a policy loan. But policy loans are normally based on the cash value, and this might not be enough to cover the healthcare expenses. When your life insurance has the living benefits added to it, you will be assured of coverage in the following cases:

  • Monthly benefit when you are diagnosed with a chronic illness and you are not able to do simple daily activities like eating, bathing, or dressing. This pays up to 25% of the death benefits annually.
  • You will receive a benefit when you are terminally ill and the life expectancy lies within 1 to 2 years. The funds could be used for buying experimental medicine or any necessary expenses that could arise.
  • You will be paid one lump sum if you are diagnosed with a critical illness such as cancer, stroke or heart attack.

There could be restrictions that may apply.  Please contact a licensed Coach B. Life Insurance agent at 1-800-800-8001 to talk about the details of including living benefits to your life insurance coverage.

When Your Life Insurance Has Living Benefits?

If by chance that you have a chronic, terminal or critical illness which qualifies for coverage such as cancer, stroke or heart attack, you can be given a percent of the death benefits so that it can aid you to pay for the healthcare expenses.

This option of accelerating your death benefits can be very important in the case of an unexpected health crisis because it will relieve you and your family of the burden of coming up with money for the medical bills. Even though this will be deducted from the amount of funds that your beneficiary will receive in the event of the insured’s death, it might be the only way to save you and enable you to live a longer healthier life after the illness.

A licensed Coach B. Life Insurance agent would love to assist you.  Just call 1-800-342-1537 and ask how to add living benefits to your life insurance coverage.


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